The Lucrative Effect Of Disney’s Domination

A couple of weeks ago, (15 December 2017), The Walt Disney Company acquired/bought 21st Century Fox. Honestly, this pissed me off. Why? Let me explain it to you.

First, let me tell you Disney’s brand association (from Mary Westre’s paper, Brand associations and the Disney Magic) which is “fun, family-friendly, happy, youthful and magical.” These associations are conveyed perfectly in all Disney’s movies. Even something such as Pirates of the Caribbean, marvel cinematic universe, etc.

That means that every exposure and of course brand that owned by Disney need to convey those associations. That also means that brand that just acquired by Disney need some kind of adjustment or shifting in their core element. But before explaining the shifting element, below are the statistic of Disney’s asset owned from 2016 until 2017 =

It’s clear that Disney’s asset is always increasing, and never even decrease. How? One of the most influential factors is the number of brands that Disney owned. For years, Disney keeps buying their competitors to make attempt to monopolize the industry. Here are several brands that are owned by Disney =

  1. Pixar (Disney’s main competitor in animation industry in early 2000)
  2. Lucasfilm (Starwars & Indiana Jones)
  3. Marvel Entertainment (MCU)
  4. And Now 21st Century Fox (Avatar and X-men)

If you notice the change, every time Disney acquire an entertainment brand, the movie that will produce after it will be more blockbustery and less realistic. For example, before MCU is owned by Disney, the movie tends to be more serious and adult such as iron man 1 and The incredible hulk. After Disney bought Marvel, their movie tends to be funny and immature (especially Iron Man Civil War).

Now it doesn’t mean that because Disney acquired the brand, the movie will not be taken care of. It’s quite the opposite, after spending billions of dollar acquiring all of those brands, of course, Disney wants something in return. That’s why usually Disney will try to exploit (radically speaking) that power into many movies (even though it quite far fetches with the original series), merchandises, games, and any other profitable resources. What I afraid of, is the shifting of the franchise. I afraid that the franchise originality will go away.

But there are of course many positive changes that made by Disney. Such as the cinematography quality of the film, the actors, and the marketing efforts being made. That significant increase in quality, of course, leads to a significant increase in the budget. For example, in the first iron man movie (before Marvel bought by Disney), the amount of budget put is about 140 million dollar. For the iron man 2 (after Marvel bought by Disney) the budget skyrocket to 200 million dollars.

Another possible consequence is the loss of old fandoms. Such as the original star wars fans that are disappointed that Rey being way more powerful than Luke Skywalker. But I guess this problem is not really a problem in Disney’s perspective. Let me explain you with an illustration called The leaky bucket theory.

As Disney’s segments get bigger (movies that segmented for all ages), their consumer gain heavily exceed the consumer loss. So it doesn’t matter because the revenue keeps increasing.

So these are only my opinion about this event. I don’t mean to spread hate about Disney, I think this is gonna be the consequences that we all gonna be seeing in a couple of months. I hope Disney the shifting effect that I already discussed in this post will not happen in the near future. So the originality of the franchises will still intact.

REFERENCES AND SUPPORTING ARTICLES

http://collider.com/marvel-movies-box-office/#iron-man-2

Leaky bucket. (2017, December 29). Retrieved from https://en.wikipedia.org/wiki/Leaky_bucket

Marvel Cinematic Universe. (n.d.). Retrieved from http://disney.wikia.com/wiki/Marvel_Cinematic_Universe

Previous Chapter The Leaky Bucket Theory Next Chapter. (n.d.). Retrieved from http://sk.sagepub.com/books/key-concepts-in-marketing/n5.xml

The $52.4 billion all-stock deal will combine two of the biggest players in Hollywood. (n.d.). Disney is buying most of 21st Century Fox for $52.4 billion. Retrieved from http://money.cnn.com/2017/12/14/media/disney-fox-deal/index.html

Walt Disney Revenue (TTM):. (n.d.). Retrieved from https://ycharts.com/companies/DIS/revenues_ttm

Wilson, K. (2016, January 21). 13 Brands You Didn’t Know Were Owned by Disney. Retrieved from https://screenrant.com/disney-owned-brands-properties-trivia/

Will that being said thatp* All products require an annual contract.    Prices do not include sales tax    (New York residents only). (n.d.). The Walt Disney Company – net worth (assets) 2017. Retrieved from https://www.statista.com/statistics/193136/total-assets-of-the-walt-disney-company-since-2006/

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